Cracker Barrel Old Country Store Inc (NASDAQ:CBRL) shares are trading higher after the company reported better-than-expected third-quarter results and raised its FY26 sales guidance above estimates.
Revenue of $797.37 million, beating analyst estimates of $776.69 million.
The restaurant operator reported adjusted EPS of 29 cents, beating estimates for a loss of 45 cents per share, according to Benzinga Pro.
Adjusted EBITDA declined to $40.3 million from $48.1 million a year earlier, although results exceeded expectations due to effective cost management and operational improvements.
Key Metrics & Segment Performance
Cracker Barrel’s traffic fell 6.7% year over year, partly offset by a 4.3% increase in average check driven by pricing. Restaurant revenue totaled $658.4 million, while comparable sales declined 2.6%.
Retail revenue was $139 million, with comparable sales down 1.8%, outperforming restaurants thanks to higher average unit retail and improved merchandising.
Off-premise sales accounted for 19.6% of restaurant revenue, up about 50 basis points from a year earlier, fueled by growth in catering and third-party delivery.
Commodity inflation was approximately 2.5%, driven by higher beef, pork, produce, and seafood costs, partially offset by lower egg and dairy prices.
The company continues to focus on menu innovation, value pricing, loyalty marketing, and digital upgrades, including a redesigned website and AI-powered tools. Management cited improving traffic trends, higher guest satisfaction, and disciplined cost controls as signs its turnaround efforts are gaining traction.
Outlook
Cracker Barrel raised its fiscal 2026 revenue guidance from $3.24 billion -$3.27 billion to $3.27 billion-$3.30 billion, versus estimates of $3.25 billion.
The company expects low-4% pricing growth, low-2% commodity inflation, and low-2% wage inflation.
It also raised its full-year adjusted EBITDA outlook to $120 million–$125 million, citing stronger operational execution and cost efficiencies.
Following earnings release, Wells Fargo analyst Anthony Trainor upgraded the company from Equal-Weight to Overweight and raises the price forecast from $35 to $50.
Price Activity: Cracker Barrel Old shares were up 29.74% at $47.09 at the time of publication Wednesday.
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